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Saudi economy may see trend growth of 4-5% , Deutsche Bank
Released on - Wednesday,04 November , 2009 -14:19 18
Riyadh- Saudi Arabia's economy may return to trend growth of 4-5 percent in coming years, mainly on the back of strong oil prices, said Deutsche Bank, urging investors to seek exposure to the country's equity market.
"In 2010, we expect the Saudi economy to grow by 3.8 percent, well ahead of all the other countries in Europe, the Middle East and Africa (EMEA), except Turkey and Qatar," said Deutsche Bank in a note dated Nov. 3.
Continued public sector investment in infrastructure and diversification, high population growth, well-capitalized banking system and sound monetary policy framework would also help Saudi's economy return to trend growth, the brokerage said.
"We believe that the banking system is weathering the global crisis fairly well," Deutsche Bank said.
The brokerage noted that despite rising non-performing-loans, it expected the sector to comfortably maintain a Tier 1 ratio well above 10 percent over the next two years and for the banking system to remain profitable.
Deutsche Bank said it expects Saudi's petrochemicals and industrial sectors to enjoy significant growth in 2010, following a very poor year in 2009.
Source: Reuters